Selling Too Soon Could Cost You Millions (Hold Your Properties for Massive Gains) | Kyle Ransford
With Kyle Ransford — CEO, Cardinal Investments
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Los Angeles Multifamily Real Estate Strategies: Building Wealth with Apartments and Commercial Investments. In this episode of No Vacancy, Taylor Avakian sits down with Kyle Ransford, CEO of…
Los Angeles Multifamily Real Estate Strategies: Building Wealth with Apartments and Commercial Investments.
In this episode of No Vacancy, Taylor Avakian sits down with Kyle Ransford, CEO of Cardinal Investments, to discuss the ins and outs of apartment syndication, tax advantages, and commercial real estate deal structuring.
As a seasoned expert in Los Angeles housing and multifamily investments, Kyle shares invaluable insights into creating long-term wealth through strategic apartment acquisitions and navigating the unique challenges of the commercial real estate market. Whether you're a seasoned investor or exploring Los Angeles apartment investments for the first time, this episode delivers the knowledge you need to maximize returns and thrive in one of the most competitive housing markets.
Highlights:
How tax advantages double returns for savvy real estate investors
Building wealth through strategic partnerships and syndications
Kyle's proven approach to navigating L.A.'s competitive market
Why holding properties for the long term is key to portfolio growth
Tips for structuring deals that benefit both investors and partners
Tune in to discover Kyle’s essential strategies for thriving in Southern California’s multifamily landscape and learn how to build a real estate portfolio that stands the test of time!
Chapters:
[00:01:21] Starting with a Duplex: Kyle’s First Multifamily Deal
[00:02:54] Lessons Learned from Early Partnerships in Real Estate
[00:05:17] The Evolution to Syndication and Portfolio Growth
[00:08:00] Real Estate Diversification: Banking and Beyond
[00:17:10] Raising Capital for Multifamily Investments in Los Angeles
[00:21:50] Real Estate’s Best Kept Secret: Tax Advantages
[00:23:13] Avoiding Tax Mistakes: Timing Sales in Multifamily
[00:25:24] Long-Term Strategy: Why Holding Properties Beats Selling
[00:26:54] Refinancing Multifamily Properties for Maximum ROI
[00:30:37] LA Multifamily Market: Challenges and Opportunities
[00:32:12] Building Trust with Brokers in the Los Angeles Market
[00:36:19] Partnering with Landlords for Asset Optimization
[00:39:00] Joint Ventures: Turning Underperforming Properties Around
[00:41:20] Family Office Strategies for Multifamily Investments
[00:44:17] High-Yield Real Estate Stories: New York’s High Line Success
[00:49:09] Manhattan Beach Investments: A Model for High-End Real Estate
[00:52:00] Mixed-Use Commercial Real Estate in Los Angeles
[00:54:13] Real Estate Financing Challenges in Office and Retail
[00:56:26] Scaling Multifamily Portfolios with Operational Excellence
[00:59:22] The Future of Multifamily Investments in Southern California
#MultifamilyInvesting #LosAngelesRealEstate #ApartmentInvesting #CommercialRealEstate #RealEstateWealth
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it's a big boys game right you know if you're going to put up 10% hard like the very first deal we did there you got to know what you're doing the real secret to real estate is the tax advantage I'm always looking for a deal that we can buy and in two years later we can refinance it so that we can go buy something else the Federal Reserve delivering a quarter of a percentage Point rate cut if it's a really good investment you'll raise the money if it's not a really good investment and you've got a bigger problem because now they're not going to do well and you only have one reputation
[Music] welcome to No Vacancy where I share conversations with LA's top multif family owners investors and Visionaries I'm your host Taylor ven the founder of the group s and I specialize in the sale of apartment buildings in Los Angeles on this show we cut straight to what matters Market insights and real world strategies straight from LA's multif family icons to help you navigate one of the most complex real estate markets in the world Southern California enjoy welcome to no vegy With Me Taylor ven today's guest is a great friend and very happy to have him in here Kyle ransford he's the principal and CEO of cardinal Investments multif family investors principles syndicators in Southern California and I'm very blessed and happy to have him on the show today because I have been nagging him to get on here and he was very kind enough
he he drove hours and hours away and uh might have had a drink last night so he's bear bear with us today but we're gonna have some fun Kyle thank you very much for being here man appreciate of course so want to kick it off with um really kind of the journey I want to start at the beginning you we talked about this before and I didn't know this about you but you started real estate in the 90s and then you know fast forward a couple years started a couple other entrepreneur Ventures give me the the entry point into real estate and
how that started for you uh well the first real estate I did was straight out of college uh I bought a duplex on 55th Street uh from the RTC cashed Advanced my credit cards for $80,000 and bought a duplex um fixed it up and back then you could fix fix up a whole duplex for like 20 grand oh my God how much was the the property so we bought it for it was like 8 82,000 we fixed it up for like 22 okay and we sold it for 135 FHA wow uh and we were sort of Off to the Races for a while yeah did you have buddies that
estate become uh somehow I'd always had like an interesting thing about real estate I kind of like the math and the finance and that kind of thing and I had a cool real estate finance class in in uh in college but uh originally I was going to go be a loan broker so I had this guy that I really liked I was and like in December he's like yeah when you graduate come work for me I'm like okay great and I call him like I graduated I'm like yeah what story he's like oh it's a terrible time in the business there's no loans don't do this I was like well but dude you told me in December like the to do this I'm planning on doing this what I do now anyways he hooked me up with some guy that was was flipping houses
basically and uh so I put together a bunch a few deals I put like four or five deals together for him and then I was like well then I started to realize like oh wait a second all I'm you give me is commission you don't give me any salary if I find something for you to buy and I found four things and I made $3,000 in commission that you didn't pay the seller paid that so I'm just really representing you as a buyer and you made $100,000 on each of those deals um and I was like you know can you can you scratch me like a little salary like two grand a month to go with this and he's like ah you know I just I don't really want to do that and so I was kind of like all right well let me so you
know sometimes the best thing in life is to get uh get pushed to go do something so I was like all right and uh started your own thing did you did you partner up with people or did you go and do like on your own how did the that start at the beginning yeah no so I started I did that one on my own but quickly I was like okay well I've cash advanced my credit cards I can't buy another one what am I going to do right and then uh I had an accountant partner who had some money himself and some uh clients money that we we did some stuff together and uh you know there were some learning lessons in that as a you know 23 year-old every deal we did like
suddenly he he he wanted more every time we did the deal I'm like wait didn't we make a lot of money in the last one why do you get more wouldn't we just have the same deal right so again then that kind of pushed me to kind of go back my own way uh so you know you have you have various pieces in in life that teach you some l long way and so that was in the 9s and you did that for how many years so that was '94 uh and the RTC Market was you know pretty incredible you still hear people talk about it today Old-Timers talking about it today and uh by 97 I was a little bored so I decided that I was going to go to business school so I did business school at SC kind of with
the idea of uh you know kind of flipping and rehabing small companies um then I left when I got out of the internet thing was happening so I did some stuff in the Internet space for for hob minute uh like what um so I first went to work at hoolahan so and did investment banking for about a year and a half and then when the internet thing was exploding in 99 I had met a partner uh at holahan that uh had a big um Family office one of the big 50 families of Korea we formed a internet company internet Investment Company in Korea I raised 15 million from Microsoft and we took it public in Korea so it was a big wild ride I didn't make any money out of it but it was a big fun Wild
Ride for couple years and the until the internet kind of went sideways in the early 90s yeah yeah so so it's kind of fun to play that for for a bit um and then uh and then about 2003 is when the First Investments that that that eventually became Cal Investments started to happen wow and
at that point this was still you or you had partnered with that guy at hoolahan and or had made a network enough where you could raise funds like this was
a syndication yeah yeah so you know another kind of uh you know young opportunity finds you kind of situation is like so you know when I was in my 20s and we bought some real estate we were doing you'd have all these friends that come up to do that yeah you know what I want to buy some real I want to own some real estate and just like you know make five grand a month for doing nothing and I'm like well it's not quite doing nothing but it is pretty cool that you know you make some money and I you know still had some assets that we had originally bought in uh you know in the first go round that i' hung on to and uh but so all these guys is yeah let me get your a beer and let's talk about it and let's do this and
like let's do this me don't you do that and like me be a partner yeah uh and so I always had a speech to those people I'm like yeah yeah I'd love to do a deal with you you you sound awesome go like look go you know do these five things to go look for properties back then it was a little different than your world today but like stuff was you know it was the early days of Internet databases so if you knew how to go online that was a big thing to go online and like a fax machine was Hightech uh go go online search for this you know here's properties multiples you know Market rents versus uh existing rant and that would that you know none of those people would ever call back right because they don't actually want to do it and a
good friend Christian or uh a younger brother of a good friend of mine uh Christian Hager uh I gave that speech to and he went and looked online he says yeah well hey how what do you think about this and it was a a for boarded up fourplex in Highland Park for 151,000 um oh my gosh that yeah that we we we still have that we still have that one today I think the building now makes 150,000 a year right but Jesus so it's you four little Bungalow two bedrooms I was like yeah actually this a pretty good deal but now we now we need some money I didn't really know enough that like I'd done a couple hard money things with the original partner I was putting stuff together but didn't really know someone that was going to write me a hard money check and so uh you he
knew someone and uh his family kind of put up some of some of the original money so his mom's a small partner in uh in Cardinal today and uh and then so Christian and I went at it together for oh 5 years or so and we got up to I don't know 101 15 properties I think there's still about a 100 units that I'm partners with Christian on and uh Christian kind of retired pretty quickly and early it says hey I'm I got my I got my scratch coming in and I've ever since been taking that and parlaying that and buying something and Christian's been uh been been living it a little simple but uh but pretty pretty peaceful so
there's lots of ways to do it so and I wanted to talk to you about this cuz the first time that I met you I went on LinkedIn clearly um as any good broker does and looks you up and um I had noticed on there and this was 2018 or 2019 something like that so I noticed on there that you had started other companies one of them being shef and one of them being a bank can you dive in a little bit to how you started a bank and then you started a food delivery
service as well like what was the how did that happen yeah um well you know lots of real estate people go you as real estate people you're always trying to go borrow from the banks and you're like dude like why do they not get it and d i I know how to do this cuz I know how to make loans banking is really about getting deposits not making loans but uh and I had had a a mentor friend that had started a bank and sold it 10 years later and done pretty well so I talked to him I have lunch with them kind of once a year I was like oh this kind of interesting and you know I had this Vision that if you could be buying real estate but also making loans get
against it you could see lots of stuff oh this one I'll make a loan against this one I'll buy that you just become more powerful kind of in the in the neighborhood in the network which which was was really true um and so from that I just started down the path of starting a bank wow okay so when you start a
how the [bleep] do you start a bank yeah you know it's kind of funny like the uh uh you know everyone's that's their action how how would you do that like what you know so I was like all right well I'm just going to have one meeting
a week about this Bank thing like I'm doing my real estate thing I'll start having one meeting away week and you talk to someone it's like yeah it takes like two years to start a bank I'm like okay well that's fine I'm doing all this other stuff why does it take two years oh well you got to get you know eight board members you got to get money and then you got to find a regulatory thing and get approved you're like oh that's kind of sounds like a lot it's like yeah there's this company Carpenter Company like they that's all they do is they help you start Bing it's like oh okay well let me have a meeting with them so go have a meeting with them they're like yeah yeah okay well that's kind of interesting and you know but you got
to be able to raise some money and I then like yeah we've been doing pretty well in real estate for a bunch of people like I I think we've got a good network from all the syndications we've been doing that we could we could pull it together and you know they're consultant so they just wanted to get paid right you know in the end of the day you kind of think you know as you get older you think these things through a little bit more so you know I was having my meeting I was like okay you got to find a CEO and I'm like okay so I had a couple meetings I talked to some somebody's like oh I have this friend that's
at this bank and maybe he do it so I had a meeting with him I like no and then I had a meeting with somebody else was like yeah I'd be interested you're like oh okay well now I kind have a CEO guy I've got this other piece but there was a defining moment when it was like okay we've had enough meetings and we've given you enough free advice if you really want to do this it's 25 Grand to for the you know the deposit to carpentering company to help you start this bank and so you know I always kind of joke with people it's like it's fun to talk about the businesses and oh I might do this and I might do this as soon as you write a check now it's real right real [bleep] so now it's like oo
[bleep] we at this $25,000 check now now we really got to go um and so you know there's uh I don't know there there's tons of stories around starting the bank but but effectively that's what we did we raised 20 million bucks uh we started banking Manhattan in 2007 uh and uh I was executive chairman for about five years before I sold my piece to the private Equity Group and they rolled up a bunch of banks which is kind of the game
plan in banking Jesus that's um [bleep] cool really incredible and I loved hearing that and and knowing that okay and then what about sheft because that seems like a whole I mean complete 180 you're going to you say hey I'm going to start a bank and then now I'm going to start a food delivery service like what was was
that through a connection what was that yeah I don't know the uh um you know I've always done real estate I've always had the real estate company the real estate company is always a Job Shop though every every deal you get is kind of you you work on that and it has its nuances and then you get another one you work on that it's a little harder versus like uh a business where you're producing a widget and certain people do marketing C people do production and then you can put more through to it because each new deal is a little bit different and takes a little bit of management over it's a shorter time frame too to get more
the returns or see cash from it right yeah totally so so there's a bunch of nuances about the real estate business that you know as a entrepreneur thinking person you get uh from time to time I get bored in the real estate business basically so I've kind of go make a bunch of money in the real estate business and after five years get kind of bored and then kind of get get excited about doing something else so the bank was the first one then we went back to real estate um did really well and then um also kind of was bored and thinking something else somebody came to me and said uh that i' worked with on another project said hey I want to start a company I said you know it's funny because and I I love to cook so uh um and was exploring
cooking and stuff like that and then uh that was Blue Apron was the first person in that space and I happened to see that and they raised like $2 million at a 10 four Mill 4 months later they rais $5 million at a 30 and then they rais like $10 million at a 75 and I'm like in like 9 months this company's worth like a $100 million I like well that's interesting yeah uh and then I was with this Buddy's uh one of my partners Chris grany out in the Hampton and in at his house is this box from Blue Apron I'm like holy [bleep] I've been thinking about this thing and what is this and dug into it and uh um and at the same time this guy that come to me said hey I want to start this thing I said well go research all
this stuff cuz I'm I'm you know doing this this yeah real estate stuff B I was I had just gotten divorced too so I was kind of taking a year off and messing around and flying around and partying and and so I'm like yeah yeah go research all this stuff and so he did and came back I'm like well that's kind of interesting and talked to Chris about he's like yeah let let's let's let's go for a run in this you know the uh food delivery space grocery is a you know giant industry so you're playing for a lot of zeros he had had an exit in in one of his companies he had been on my bank board too and uh said hey you know this is uh you know kind of shake of
the dice but the numbers here are crazy so we're going to kind of play for the jet and go go see how it goes uh so we had a we had a really good time with it that that space kind of didn't end in the uh the way that that we'd all hoped so there was no great exit to it but uh it was five years of fun we went from like zero to 500 employees in three years oh my gosh $80 million in Revenue in two years and so from like a building stuff and like being an entrepreneur like it was it was fun crazy days CU you were always trying solving new things and so forth so it was a good time uh you know probably cost me probably cost paid for it but but the lessons hopefully
learned and the connections and I mean that experience right you can take that into whatever you do next which I mean is is AI next for you C you have the itch
now man I don't know like the tech stuff is funny because I I laugh at like when I first got into real estate I had this giant technology Advantage because I was 22 and I bought a Gateway computer for $2,000 on my credit card and it had a 24-bit modem that would go and you dialed up but you could you could go find out what was for sale online that nobody else could do because they weren't 22 and understood the computer and so you could find out that all the things listings got posted in the MLS and the book didn't come out for 15 days so if you looked online you could see what was for sale for 15 days before anybody else knew what was for sale so I mean imagine today in today's world like if you could be the first guy there and nobody else even knows
it would take one minute to download one like super grainy image and if you wanted it in color it was 15 minutes to download like a 3X3 thing and then you'd print an offer and you'd fax it because that was a brand new technology too and agents would get a fax and they'd be like who is this that you're faxing me an offer and I don't know who you are you don't have the courtesy to drive your offer over to me today and you're like why making 15 of these offers today on all these properties that I saw and you know yeah right like so we had this huge technology lead but that was that was like technology advantage that like today's laughable right that's crazy but you know AI we we look a little bit about it and trying to figure out how
it's definitely fascinating it's you know me I guess being in the 20s I'm very um interested in the space as you should be and trying to leverage it to do better in what we do cuz the competitive Advantage seems to be very small in today's market besides relationships which it feels like in a lot of businesses entrepreneurship relationships Drive the world um so speaking of of relationships and uh syndication you've had a lot of investors over years yeah you've seen from 22 when you worked at hulahan and you were raising $15 million for this fund how do you go about meeting people building relationships and raising Capital not only to invest in real estate but in general for
an entrepreneur um it's kind of different it changes over time it's it's also funny I found it like much easier to approach people and raise Capital when you're younger as you get older it gets a little it's a little more Awkward to meet people and raise money in certain ways in the in the high Network space um but you know it's about relationships and you know if you do a good job for people people that word travels and it's still the the absolute best way to do it like another you know technology going back a bit we were the very first people to use this thing called goto meeting which allowed you to do a conference call of 80 people before like the only way to raise money for a syndication
was to like go have coffee with somebody and say Hey you know da d d d we give me 25 Grand and it's like if you're raising 5 million bucks 25 Grand at a time it's too many coffees you can't do it right so goto meeting we were the like the original one of the like what do you call it early test people no way and the big thing was you could put the presentation up and you could control the screen that everyone was looking at right sounds like oh my God so like you know but it literally took 20 years before that that technology became inous right like wow they were 20 years early 20 years later right so we had that and we would use it to Syndicate and you know we did really well for
we you know we the other piece is we've really I've always focused on being a real estate investor first and a money raiser second so the deals come first there's a two ways to be in this business frankly the smarter way to be in this business is to raise a bunch of money to go right down the center of the path which is raise money charge fees flip deals get exit fees Reby get people to reinvest and do this it's terrible for the investor from a tax standpoint and I've always raised money because I ran out of money to buy myself so I've always been trying to build my own portfolio and so that's how I've always approached syndication it's like I'd buy this myself I just don't have the money and so most of my
early syndications I'm like yeah I'm putting in 30% because I just don't have the other 70 and it's like well as soon as you're doing that then people like oh wait a second like yeah that's a that's a different approach skin in the game right so um but you know through that but through that your original question about like how do you build relationships like we did a good job like we would send out quarterly reports so we had decent communication especially for where technology was at that point in time now of course you know there's all this software
you go Bing and out it goes but um and we would have so we got to the end we'd have a conference call and there'd be 50 people we invited and there'd be another 50 people that would be their friends I always call a go golf force them there's one guy that makes the tea time and the other three guys just show up so if the one guy says he's doing it the other three guys are just in because the other guy said he was doing it and we get half the money so we'd say okay this and then you know back then you sent a check so we'd have the conference call and you're like h i wonder like what's going to happen yeah are we and then you'd open the mail the
next day and we'd get checks from like half of the people we never even knew and you just like so you got on that conference call and you heard what we said and you know we thought we were smart and doing a good job and all that but you're like and then you just sent your money you didn't even call and say hey like I want to meet you interesting so you know the psychology around raising money is super interesting but it it's really about building trust with people and creating relationships and that leads to referrals and you know good things lead to good things and so you just you have to be you have to be super careful about that and then you got to go back to the first part is if it's a really good investment you'll raise the money
if it's not a really good if it's not a really good investment not only will you not raise the money if you do raise the money you've got a bigger problem because now they're not going to do well and here you go right so and you only have one reputation yeah it's like your virginity once it goes man it's gone it's G only lose it once only way
there it once I love that speaking of kind of these ingenuitive different ways of thinking which I know you as an investor and the way that you run your syndication is a little bit different than the average syndicator um generational family wealth I from my understanding that's how you look at these Investments and how you raise money can you talk about how the way you structure your syndication is a little bit different than other typical
you know again I told you we don't go down the center of the Fairway in the real estate business because that's really becomes really about raising money and making fees and your percentage of The Upside is like kind of secondary in a lot of ways I've always been the investor first looking for stuff for myself so like you know over time we develop stuff we're doing like more traditional kind of syndications that kind of stuff but the real the real secret to real estate is the tax advantage and the tax advantage Doubles Doubles the return in real estate over time and that's why all family offices as soon as they get a big pot of money they run to real estate even if they weren't in the real estate business before because the tax advantages
are unbelievable uh if you have the scale to be in the game and what are those tax advantages most syndications don't take advantage of that the the tax the big tax advantag is you can take depreciation to offset your income so you can pay no tax on your current income and then you hold the asset long enough you depreciate it down your kids get the stepped up basis when they get it so you skip paying tax on the asset forever as well as you get a bunch of deductions against other income you might have outside of real estate or against other real estate so if you set it up right you don't ever pay taxes um and so you know as we talked to our partners we kept having the problem of like oh hey we bought this thing
you gave us a you gave us you know most of the time when we were raising it was people we knew so we had a lot of 25 like we raised 5 million bucks 25 Grand at a time on those phone calls we'd have 50 60 partners because those were the people we knew right that's what they had yeah um but anyways if you know use round numbers because it's easier okay cool you gave us a 100 we did real well in two years we gave you back two and people would be like oh man and you'd be like oh man dude like I just you gave me 100 I gave you back two in in in two years like it's pretty [bleep] good man why why you like you're how about thank you right like okay what's the problem Oh you sold it on December 31st and
I wish you'd sold it on January 1st and then the next film call but you sold it on January 1st and I wish you'd sold it December 31st because I have this other tax issue and now and you know the hundred that we made now I have to pay taxes on it and I depreciated some of the other piece I'm recapturing that so the hundred that you know this extra hundred that you gave me I'm paying 70 in tax CU they had already taken the depreciation and made the money before and now I don't and I don't have anything to do with it now I got to find something else to do with it and you're just like whoa okay so you're upset and like well you know you know don't you have a tax problem it's like well no
I don't have a tax problem because I have long-term real estate with the depreciation and so forth so finally I said why we doing this this isn't really benefiting our investors like the model of making the fees and the flips and getting your cash early like matters and as you're starting out you need those as a syndicator to kind of live on as you get a bigger portfolio and you can live off your own portfolio then you can structure things differently so now what we really do is help people take take advantage of all the tax things so we think tax first you still have to make great real estate Investments but when you think tax first and real estate invest and great real estate Investments the combination doubles the return you turn 10 into 20s 15s into 30s you
don't have to try to make 30 to get an amazing return because you can make 15 or 20 and get double that on the tax side so you know the cost segregation stuff that you know is it's a little bit more prominent in the knowledge base out there now but you know that uh certainly cost segregations always been around the accelerated depreciation that Trump put in place four or five years ago of course was a big you know thing and we were early adopters to that before you had a lot of people talking about that but so we're really setting up for families MH we'll invest with us but we're focused on raising the value refinancing out the initial cash flow giving you your initial cash back you take all the tax benefits we then split the profits above that so most
investors should get 100 to 100% of the money back first and then 30 or 40% return on the tax savings that have generated from the depreciation of it and then we split thereafter we let them be in control so they get to decide when to sell and when not to sell and we're not in the business of flipping that asset of saying hey been three years let's sell it instead we say just hold it just wait 10 years you know be being around long enough you go um you know two years out of every 10 rents go up like 15 or 20% and other years they float around a little bit one year maybe they go a little sideways or and one year maybe they go slightly down uh you it's
really hard to predict which are the two years where where those rents are going to explode and if you hold the assf for 10 though you're going to get them and that's where you get the big long-term returns if you hold real estate for a long time you know most people know it in their houses that they've held for a long time and it's oh gee we put down 20 grand and now it's worth a million dollars and we made 600,000 on our 20 grand and however the Nath works right so um so we're a believer in helping people own it longterm refinance it take the money out tax-free and roll that into another property so that's that's often what we're doing with people is saying hey buy one let's fix it let's buy value ad property let's fix it up let's get you C we'll pull the cash
back out you get the cash we didn't get anything but now you have the cash and you say great let's buy another one so it works for us because we have multiple properties with you it might take a little bit longer before we're getting paid but generally when somebody gets money back they go cool let's buy another one yeah and then it keeps rolling and then you build it and
them correct and and the taxes pay for it so you know in a lot of these cases especially in the Years where there's 100% depreciation if you had somebody that had you know significant tax stuff you could buy an asset using High leverage but if you bought the asset on hard money with with with the intent to fix it up and improve it the tax deduction the tax the cash value of the of the the tax deduction would be the same as the down payment so you could legitimately say to somebody we're going to buy this for million you're going to put up 150 but you're going to get a $400,000 deduction that's going to save you 150 that you would have otherwise paid the government and instead you bought a property so the money was either gone forever or you own this property and
you know no brainer no yeah exactly right and you know when you talk to people that don't understand that you kind of go like maybe this isn't a good partner but uh yeah so you know the tax again the tax stuff has been phenomenal the tax stuff is always good in real estate it's of course been phenomenal with the Trump trump era stuff but you know they'll continue to be opportunities and tax stuff in real estate and you know so that's really our Focus again we have five we have about 10 families that we're we're kind of doing that program with um generally speaking our answer is whatever you have to invest put it into like four chunks that you're going to have or maybe have over time so you know if your unit's 250 great and then by
the time you get the fourth investment one of the First Investments is refinancing and then funding the fifth and now you have a funded business that's growing the flywheels moving flywheels moving buy one a year don't don't listen to what everyone's saying it's a good time it's a bad time it's a this it's a that just buy one a year there'll be a bad vintage every 10 if you hold it long enough it'll work itself out you know 2001 200 you know 2022 is not such the you know amazing time to have bought stuff but even now like the you know rents are coming up and so forth so it's tough for three four years if you hold it if you hold it long enough you'll be fine right and then of course when you hit the right vintage it you know
it explodes so so what today how are you finding deals and what does that process look like because I assume you're out there I know you're out there looking at deals and trying to buy stuff how
are you coming across deals that you want to invest in well you know I try to have uh relationships with the most excellent brokers in the business hence why I'm here uh you know didn't pay him to say that uh no but we've known each other for a while you're a fantastic broker thank um and you're a fantastic broker because you're straight up you say what's really going on you're trustworthy you're not going to get you know not going to say something what say something that's not true say lead front run someone say if you do this then that that's not really true like you know so many Brokers step on themselves by just you know um yeah slimy is the word that gets attributed to them but they're just basically not being trustworthy and TR and truthful it's like people want to be around people are trustworthy
one of them but we have five or six great broker relationships um we always do what we say we're going to do that's our big piece we you know try not to retrade La is a big retrade Market we try to build our reputation on not ret trading even when we get in something and go this isn't right we try to just walk away instead of retrade the Brokers of course well well tell me what price would it work and just like yeah my reputation's worth more than this deal we're just not going to you know play that so yeah you always chew be straight too on
the initial offer right it's you know I'm like Kyle this is a good deal you're like I'm at a seven and I'm like okay and I know when you say that that's what you're at and so that means a lot to someone like myself who when I have a deal that I want to sell or send it to someone who I know can perform and Trust like you clearly have built that um reputation amongst the Brokers that you work with pretty significantly when it comes to ret trades you're were talking about La being a retrade market yeah tell me what you mean just explaining to the people like what
is LA's investor Vibe yeah so um we had an office in New York for a while and built some buildings in New York and had a lot of fun doing some real estate in New York which is a whole different Market that's uh you know has its all the things that you can attribute to New York right but yeah um so the difference like in New York the answer is you want to buy my building go take a look make me an offer you're offer better come with 10% non-refundable day one you got 50 days to close that's it you know whatever our deal is right that's it la oh you know yeah I got 30 days to look at it and d and oh I found this out and I found this out and then you
know the Leverage is on the on the buyer side because the seller really wants to close and not start all the way over and you get to the end but the buyer's not hard and so you know there's ample opportunity in the right situations to be like oh hey well I think he really wants to close tell them we need 10 grand right and you know like you can usually hold people hostage effectively for some from for some dollars because they're stuck there the cost is starting over the broker doesn't want to do it half the time the broker throws in the money just to make sure it happens which is inair to the Brokers either that's another thing we never do say hey don't put your money in the deal we don't want you to be putting your money in the deal the buyer and the seller have the
money here they can work it out you know so again we try to build that reputation so that we when there is a good deal that needs to per form and is at the right price we get a phone call because we get if it's a great if it's a good deal that has that there's ample people that will pay that price you got to be the one that has built a reputation of I'm going to close and I'm not going to mess around and I'm not going to get to the end and not going to take your Fe I'm not gonna yeah all all those things that nobody wants it's like don't it's tempting right but you don't want to do those things or that we we don't do those things so we miss out on certain parts of deals because oh the guy
tied it up for a million and then he told the guy 800 and the guy said yes it's like we would have paid nine but like um you know but yeah your reputation and everything like that it's not worth chancing that off of one the the
seller actually capitulating and then also the broker probably doesn't like that buyer very much anymore because he makes his seller look bad and the seller's mad at him and it just becomes not great what why do you think that that what the process is in New York why do you think we don't do that in Los Angeles
culture yeah I think I think it's a little should I start doing that is it better for the is it better um like it's it's great because it's a big boys game yeah right you know so you you you chase out of the market it has all kinds of different pros and cons but the interesting part is you have to be a big boy you have to if you're going to put up 10% hard like the very first deal we did there you know we're borrowing all the money to put up 100 Grand to say that we can call around some people and raise 700 and we're not going to get the 100 back that we borrowed from friends to do it like you know a stress thing to get into that and to get into that game and it's not you know we're here you
tie it up oh we couldn't find the money we'll just get our deposit back we'll walk away we'll blame this you know blame some reason so um you know it chases away a lot of the the the smaller investors because you really got to be a big boy and you got to know what you're doing um and it's nice from The Brokerage side yeah it is that would be nice I didn't even think about that I mean I love when a non-contingent offer comes in don't get me wrong but I
didn't even know that's that was the standard in New York city which is is interesting to me but it makes sense I mean those are bigger buildings too it's rare that you find a a million dollar property and yeah no no for sure there's there's a mom and pop La is all small Mom and Pops anyways yeah it's it's the land of small 8 unit 12 unit totally properties
and there's places in New York where it probably plays a little bit the other way to where some of the small properties are in the outling Burrows and so forth but yeah you know if you're playing in Manhattan for sure and even Brooklyn and those types you're you're playing that kind of game so we're trying to get we've been you know as a good real estate investor you never have any cash cuz CU as soon as you have some cash you're like oh that's a good one let's buy that one um but we've been working hard to get to a place where we've got cash and can close cash and can close quickly so that in certain of these situations we can say and actually perform on like yeah we'll go hard and close in 10 days and you know you see some of those people out there and
I think you do end up driving uh get a little bit of savings or win some deals that you might not win otherwise because of the terms are like okay as you
can imagine so tell me about we were talking about this new product that you guys are coming up with where it's a partnership JV situation and I had told you and we were talking about this that I had had this idea two years ago and I thought it made so much sense because so many there's there's so many landlords in Los Angeles that just don't run their building to the maximum effect they could be while also having the relationship with the tenants they they're very lenient on that so tell me about this new product that you're
kind of ideating on and trying to figure out yeah so we're working with a couple families on it like um it's interesting over time when we were younger we somebody say oh I know somebody's in real estate maybe he'll invest with you and it's like no he's buying his own buildings he's not going to give us the money to invest he's doing his own thing right well over time we get you know it's part of it's my age too but like now I'm meeting more people that are you know at the later part of their portfolio accumulation whatever they're probably in their 6070s ' 80s uh been great real estate invest and so forth but you know they got a foot off the pedal and so forth and they're not asset managing to the level and so forth and maybe the maybe the kids are
interested in the business or not you know we've always bought these buildings in these situations where that you know they've been mismanaged and yeah I'll buy it from you sure yeah and uh and then you know kind of came to us like we we okay um more and more of these people like yeah I've done all the work I don't want to do the work anymore but my family like that my family we bought this building this building put the kids through college this building is the Golden Goose that keeps on giving I want my family to have it maybe the kids see some of that sometimes they want the money really fast but uh you know see some of that of like hey we want to have real estate in our portfolio but we don't want to deal with it anymore
is always the answer I'm selling it because I don't want to deal with it anymore well same things as you buy stocks you'd either buy a mutual fund or you'd hire a broker that would charge you something to go pick the stocks and help you manage it um and for us it's like okay well we don't have to go find the assets we don't have to go raise the money we just need to work with these people say hey okay if they're worth this today if we can make them worth more we want to participate in making them worth more and usually it's incredibly obvious like you say that oh I just didn't raise the rents because I didn't know I didn't get around to it and it's just not professionally managed right so it's pretty easy in these situations and
you see these guys like hey we can help you you know turn it from a million to a million five really fast like you've bought it you've held on to it like why sell it to why sell it to me for a million and I'm going to turn it into a million5 uh when you could do that right and um so you know we've been working with a couple of like I say um families that have a portfolio that in some situations and you know did General concept is you'll hire us for a while um usually by the way my kid worked for me this summer and he would said the same thing dad why why had this and that and we have all this random stuff and like these are terrible and it's like okay kid like but um uh the taking
that portfolio and getting into something for the Next Generation to manage so you know it might be selling off a few it might be fixing a few assets and selling them trading them into something else deciding hey let's get rid of this in the portfolio but let's keep these let's move into higher quality assets that maybe have a different return profile of course you know the tripl net world is obviously the easy one but if you get into really high quality multifam kind of stuff you might have some of those characteristics and again if you have uh you know we call ourselves the real estate bodyguards like we're here to implement what you want to do we will give you all the advice of what we suggest doing but it's still your properties ultimately your your decisions and your your your control
and so you make money for the the upside that you create so you have to first determine with them okay your property today is worth a million dollar we think we can get it to a million5 we're going to share and a percentage of that upside which then gets paid out how U or
is that the structure yeah so that that's the structure we would basically get paid out at the end of the relationship right so either refinance or if there was a ref if there was a refinance if there was cash flow that got distributed um those pieces so again we would we just have a baseline they would get um things to that Baseline and the dollars above that we would share we would share in in on a percentage basis uh going forward so for us it's a again it's a long game of like hey we can turn these into into stuff we're happy to sit around and hold them with you for a long time we're also happy at any point you say hey we want out of this you know generally speaking we're trying to keep things super simple saying all right we're going to take a
rent multiple we're going to take a cap rate we're going to take something to Value it today and we're going to take the same thing to Value it when you decide that you don't want to send these deals anymore you know so the market might move up or down and maybe that helps the you know they obviously have the decision of when to do it so they they have some potential for multiple accreate we're like okay whatever you know generally speaking you look at these and you're like these are so easy to make a bunch more money for them they're going to be happy but let's not let's make sure that the breakups are simple all my partnership agreements I look for the simplest sort of breakups generally speaking I like the um I've heard it usually it's turn the Chinese wall of stuff if we're partners and
know somebody says oh I you know I went out of this partnership one guy names the price the other guy says if I'm a buyer or seller so if you know if you name the price too high then the other guy's going to force you to buy it and if you name the price too low then they're going to buy it uh you know but but it's a real Fair way of calling every carpet right and we don't have to get three appraisals that somebody paid the guy to make him a fake [bleep] appraisal and then lawyers and this and that and have all this acrimony it's like really the Chinese wall that's a good one it's really man up right like I say it's worth one to okay cool buy it like um and you know can be quick and easy so I I always think in in Partnerships
you want easy ways out totally um that and that also keeps when those are the situations it keeps everybody honest to say well I'm not going to be such a jerk in this partnership because at any one time you could say okay let's end it and we can end it really quick and easy um you know I think so anyhow you know thoughts on that I like that that's
very interesting and I think with Los Angeles the way I mean I've underwritten thousands of properties and it is prevalent everywhere there's many mismanaged and undermanaged assets that could use something like this and it almost is a creative to the model of you wanting to build like family office wealth anyways so you're almost Consulting with them and improving it they're sitting back and you're doing all the work and you get it's like a win-win scenario which makes a ton of sense for my understanding yeah I mean
I think the you know again when you're raising money if you focus on like what's your problem or your situation or like when we we go talk you're problem solving we're trying to be more of a problem solving than like hey I have this deal this is a good deal do you want to be in my deal it's like well wait a second what's a good deal for you what are you looking to do what kind of assets are you looking to buy um you know we we can go find the right kinds of assets if you know what you're doing of course in you know the broker Network as you know um but it's very different do you want you know West West LA multif family or do you want East LA multif family very different kind of products they both have characteristics that
have pros and cons to them but what are we trying to do so if you start with you know what are you trying to do what are you trying to build over time what cash flows are you trying to look for for you and your family and so forth then you can back into like okay well this is the real estate that makes sense and this is the tax situation that makes sense for you um how do we Max ma imize the tax find the right real estate that's going to fit for that um piece to it so you know we do a lot of that at the same time a lot of our families are like no we want the most you know opportunistic deals I'm like as you know we're looking for opportunistic deals at all times
and okay cool if you want to follow us on what we think's most opportunistic and we think you can make the most money on this great but at the same time we're here to solve your problem of what you need and you know again half these families the problem is we have all these assets we don't want to manage them we don't necessarily want to sell it and buy stock and pay taxes but we just don't want to manage this anymore you know the hard part of course is they've got to agree that oh we're going to give up some of the upside and you know getting someone to appreciate that we can actually make it worth more than they can uh you know that it takes a it takes a certain person and a certain level of experience to be like oh somebody can do this better than I
can do right most most humans don't want to admit that somebody else could do it better than they could um you tend to find that actually with the guys that have been doing it for a long time it's like well I could do it what then the answer becomes I could do this as well as you could if I wanted to still do that and if I was going to spend the time but I want to spend the time with my grandkids it's like makes sense you've earn the right like yeah let us go and do that and if you want to be on board we'll we'll go make it happen here's all the the examples in track erer that we have to prove it yeah so again it kind of came out of the like I said the original investment of of moving from syndicating to
whole ownership with people was hey this is a better tax situation for our investors is it a better structure for us like maybe yes maybe no but it's certainly better for the investor so follow that scale then for sure and then we found a way to make it really good for us with the scale and and the repurchasing and so forth again here's another product that it's like oh we got a good relationship you're good people we'd like to do something together um but what's your problem not like hey can you give us some money to go buy something else it's like they already have stuff right so again focus when you're raising money and you're talking to people if you focus on helping them and finding a way that you can make money on on on that situation quote the win-win
right so totally what is the best deal that you've ever done we've done some we've done some random on so the the the story that I love on the best deal that we've ever done um so in New York the there's a thing called the Highline which is kind of well known at this point but it was an old train track from the 20s that the city was originally going to tear it down there was a big movement to save it turn it into Walking park that's been done we had some assets on it at one point we were big big uh donors to to keeping it and and highly involved in that and so we were looking at Assets in Along The High Line because we knew it was going to become a park and people walking on it so the assets next to
it were going to be great um so we identified this uh parcel that was about 4,000 sareet that was literally under the train track so it was literally under the train track bums there you know dripping with like uh water and this and that but in New York it's 4,000 ft it's worth something it also had air RS as a thing in New York where you can because of that you can build them and then they allow you to transfer them so they have value so I can get sell somebody the air right to build one square foot they can build that one square foot somewhere else so the you know at that point in time the the air RS were worth like three 400 bucks a a foot right so we find this piece that like somebody own that it's literally bums sleeping under the train track
and I think I'd have to get the exact numbers right but more or less we we agree to buy it for 4 million bucks and you're like we're going to pay $4 million for like this thing under the train tracks and from an LA perspective like you shake your head right and you're like yeah okay that makes sense and um it came with uh 4,000 ft of air rides so we're like okay wait a second we can sell the 4,000 feet of air rites for 300 bucks a foot so we can sell those for a million to so we put it in escrow went hard put it in escrow um we found somebody to that we knew somebody to buy the airs so we signed a contract to sell the aites at the clo at the closing wow so you already had
that lined up so we we were selling a million two of a rights we were going to keep the the the property we had a bank that was going to lend us against the property uh and they lend us we needed 700 down so at closing we got a check for $500,000 because we sold the AES for one two and we had to put down 700 uh that bank then went through the uh got taken over by the by the government in the in the 08 crisis the new lender said we got this loan on this dirt under a train track we don't want anything to do with this so you know we had borrowed like 3 three on that $4 million purchase and so then they said you know whatever we want we want out of this we'll sell it to you for we'll
sell you the 33 loan for a million5 so then we bought the 33 loan for a million5 uh financed that with like one six so we paid for all the fees and we walked away with like you know enough money to go to dinner but we didn't have to do anything there and we reduced our debt to six and then we turned around and sold the parcel under the train tracks for like three million bucks and made like another one four so we never put any money up it it was this random piece that like you you kind of laugh at so uh just shuffling a bunch of paper and like so that was kind of a fun one cuz you're like what are we doing buying something under the train track and they've since built an art gallery building under the train track is
very artistic over on 10th and 25th it's a you know was it was uh ended up being a cool uh development and and the Highline of course happened it's a great addition to New York so Highline sweet yeah so a bunch of sweet stuff happened but um it was kind of a fun one because uh we made a bunch of money on a kind of weird
one that is incredible that's those are the stories that I love to hear and when I do hear them from investors I'm like what the how did you you know it just it it's That's The Power of real estate that's the creativity and it's still one of those Industries where there's information asymmetry like there's insider trading it's real it exists if you know something that someone else doesn't or you can see something a different way and have a vision that others don't that is to me the secret sauce of what makes really good operators and owners uh good it's because they can see that they have something else that other people are missing and um you've obviously you guys have found that little little skill in whatever it is that you're doing we
work on it you know you got to be everyone says oh you must have been super lucky to be there well getting up you know at 6:00 a.m. and looking online and finding a thing and being the first one there it means you're super lucky then yeah that yeah exactly I know as you know you got to work hard to do it you got to have hard work to do it too but you're you're totally right of the Great the 20 year overnight success you know exactly
probably bigger than that it might it might be 30 I drive straight from college graduation to my apartment in uh in Manhattan Beach so that's that's getting back a
few years now yeah we'll say it's 20 um but Manhattan Beach I when I first moved to LA I moved to Manhattan Beach redonda beach but close enough to manhatt Beach it's one of the my favorite places in Los Angeles I think it's a little
slept on compared to other neighborhoods the best beaches in SoCal and la and again my opinion but I think that's a true fact what you own a bunch of Real Estate in Manhattan Beach and I think you've seen it since when you've bought and the appreciation and the wealth that has grown in that neighborhood it's a it's a very wealthy neighborhood like how did Manhattan Beach happen and why besides just proximity did you have some vision of what Manhattan Beach could be or was this kind of like oh you know it's
I'm close by I like the real estate like yeah we'll buy it uh well so manhatt Beach changed I moved there in 94 so somebody can do the math if they want to but the big thing that happened in '94 is the 105 Freeway got put in and that changed so you could live in Manhattan Beach and work in downtown where before you'd have to take surface streets to get to the 110 it was about an hour and a half it turn turn that commute into about 45 so that brought a bunch of wealth the school system uh you know they done a really good job b a MAF raising money and getting the school system better so now you then you had an next influx of people from the West Side saying hey I've got to pay $40,000 a
kid for school if I move to manhatt beach I save that I put him in school there I save Grand I'll buy a nicer assle that drove wealth in manhatt beach but um you know it's always been a nice high-end Coastal Market with expensive real estate um you know I messed around looking there it took me 20 years before I bought anything commercial in Manhattan Beach to finally find a deal that had an opportunity I'm always looking for a deal that we can buy and in two years later we can uh make it worth enough that we can refinance and get our initial money out so that we can go buy something else which started everyone's like well how'd you come up with that formula I'm like well I had to because if I didn't get my money back I couldn't buy anything else myself
you know we didn't I didn't start with these you know as many relationships I didn't have the the uncle that the uncle and the family friends that were you know cashed up to to invest with so you know our journey is a little bit different than others but um uh you know so there's various points in minam Beach you've been able to find some opportunities of um buying something and having the value ad situation be there uh and then as you know now we've we've we've uh you know there's also one sale a year in down in in the commercial in manam Beach it's a little bit more of a hobby than a business um but uh you know we're we're involved in you know about half of them generally speaking what
uh the the manhatt Beach Boulevard man Beach Boulevard yeah mostly on man uh mostly on Manhattan Beach Boulevard the the boulevard is uh the higher value the higher dollar place in Manhattan Beach so retail right retail office retail and office up upstairs so our business model is generally speaking trying to have very high-end office rehab the building so you have very high-end office up above because the clientele that's there um is very interested in a high-end office that's near the beach and all that they're not interested in a or there's less demand there's still demand but um that client that is willing to pay anything for that office is not willing to go into the one that's sort of the old Beach Shack there's still plenty of people that love the old beach Shacks as I do but um the business
you know rent the retail down well and in mahattan Beach people are like office why would you buy office it's not like the standard office Towers this is beautiful retail at the bottom really nice coffee breakfast spots whatever and then it's like your private sweet Penthouse office little you know this is where the wealth managers go and
the lawyers and that kind of stuff so yeah they're two they're it's a you know beautiful office away from the home but close enough to the home uh yeah honey I'm going to the office and it's they take their bike and they you know yeah you got Sims downstairs and you meet your buddies downstairs for beers out the and so forth so it's a very fun Community to have your office down there and and so forth so yeah we're we're actually in esar right now on on an office building uh down there and um trying to find out financing for right now for office like you talk to Banks like large Banks like Chase will say oh we don't lend in any office you're like any office like does it matter like no office like anywhere in the country no office right and I'm sure they do
some very big deals for some some people somewhere else but like at a small Regional level their answer is no office like and so the lenders kind of run like sheep like that though so you know three years ago we had the same conversations they wouldn't lend to us because it was retail it's like well it's mixed usice it's retail and office oh we can't on anything that's retail okay great and now we've got the opposite oh we can't land on anything that's office it's like well it's excuse It's retail downstairs and it's office upstairs and it's not really office as you think of office but um you know so they just make this blanked statement so there there's funny things that happen the real life but those are the opportunities right 100%
I heard a rumor and you can tell me if this is true or you can deny it I heard there's an airan going in in mahattan beach is that true I have heard that
I have heard that I have not heard that from aan and uh um or the property owner but um I'm pretty sure that that's true uh somewhere somewhere on Rose Grands yeah that's gonna be crazy I think it's in the Mother's Market is what that that that is the rumor that I've heard that might might be across the street from both of our offices yeah I know geez well my former office man now
honestly it's probably better for my wallet to be honest with you because I would I would run out of money if I lived across the street from airan which if people don't know it's the most expensive fanciest really delicious um grocery store in Los Angeles so I yeah it's funny when because I worked with a couple retail guys who you've worked with too um and I felt like newer and better and unique kind of the retail space became really hot it was very mom and Poppy for a long time in Manhattan Beach yeah and salt and straw you guys brought in you brought in you know air coming in now but there's a lot of these more I would say not corporate but just higher end um you know kind of retailers yeah I
think ret retail and High Street retail is certainly moving that moving that direction it's it's hard to be in the retail business if you're you're not it's like 10 bucks a foot yeah 10 10 12 bucks a foot is is kind of Boulevard Boulevard R which is not bad because
I was just uh on Rodeo Drive and Rodeo Drive or maybe Beverly Drive anyways one of them was asking 20 bucks a foot for retail and so if you think about it Gucci Prada whatever's 20 bucks a foot and most likely 18 you could negotiate it down to Manhattan's 10 to 12 it's like wow okay we're get we're kind of getting somewhere so if anyone you know visits Los Angeles Manhattan Beach is definitely a place where I think you need to go um and go into Kyle's buildings that has the stores in them and support support the local community um before we wrap up I want to ask you about really what's next and over the next 5 10 15 20 years like where do you see yourself or in an ideal state where do you see yourself and what does the business the company your time what
does that look like yeah so you know uh I'm getting to the place where you're like somebody said to me we were an es on something and I was say oh this is happening and the bank and somebody didn't do this and like as you know closing a deal is just a whole experience of everybody not doing their job and like you said you were going to do this and you didn't do it like no one does what they say they're going to do right uh and so it's all frustrated the person goes like well you said you have like 79 apartment buildings I'm like yeah something like that he's like why do you need 80 like I was like that's really interesting I I don't know like the hamsters on the wheel and the mouse lights to find the cheese like I
don't really have an answer um so it did make me kind of step back a little bit and think so so my focus right now is bringing in some um you know some younger people to build the business really as something that can move forward without me and get myself to where I'm a little bit more than limited so um you know we're bringing in a CFO we're going to bring in um someone on the uh on the um uh investor management side of things and we now have like 7 800 units in and so we trying to revamp the the property management company has to run different with that kind of units than it did with you know half those units you keep having to reinvent the the methods in which you run things so um for the first time I'm trying
to focus myself on the actual operations of things I always love the go- go growth and go do the deals and I'm kind of a deal junkie as you as you well know um you know so I every email get well no uh oh maybe uh but I'm I'm trying to I'm trying to get a little bit more measured in uh in in what we're doing and build something that you know H has uh some sustainability and um back to some of the original comments of it being a Job Shop of like not having every answer and and piece need to come for me to my approval and so really have a build it have a really high quality team and we have a really great team and and the people that have helped us get here are fantastic and committed and so forth
so it's um you know but augmenting augmenting that and making sure that that's um set up well for the future you're still going to answer my emails right yeah no I can't kind of help myself so so then when so then when you go do that you go like oh well if we're going to do that we have to go from 700 units to a th000 units like okay well we better go back right yeah I know I know well
I'm glad I'm glad I'm still going to have direct communication and and this is no no time soon I know it's it's we're deal junkies we love deals and it's hard to take that out of people right it's like you can delegate as much as you want but there's just certain aspects of business it's not about it's not about the money it's about the deal it's about the process of it and so I don't think it's a bad nothing necessarily for you to continue to want to enjoy that aspect of real estate but delegating some of the stuff that maybe drains you yeah I think I mean I think we we all think about that every time it's like I don't really want to have to do this so you can
do that I think that's right and I think the companies that are set up best the principle is close to every deal just from all the things that go on like the broker needs to know it's like you can't I've had an Acquisitions person in the past there's all kinds of it's just another broker your own employee is a broker to you and usually they're on commission so they're trying to convince you to buy it even when maybe you shouldn't like and then the real broker is
like well I'm not even talking to the decision maker so this is a waste of my phone call like when are you going to talk to Kyle and then call me back and blah blah blah it doesn't work really well and so your relationships with the broker suffer internally I'm not sure you end up with the best deals Etc so you know again my hope is to we get to we get to hang out and I'm going to stay close to the deals absolutely much more Kyle I appreciate it very much you coming on here dude thank you well well thank you and future success to you absolutely we're going to keep on
to this episode if you enjoyed the podcast it would mean the world to me if you could rate US five stars on YouTube Spotify and apple podcast it really helps us get our name out there and helps us get fantastic people like our guests to share their insights and knowledge with you again my name is Taylor ven I special in the sale of apartment buildings in Los Angeles in Southern California and I look forward to sharing more of these conversations with you see you in the next one